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Frequently Asked Qusetions
Q. What is an NRE Account?
The Non Resident External (NRE) Account is a savings account held in India, in Indian rupees. The Principal and the interest in an NRE account is fully repatriable. Interest income is exempt from Indian Income Taxes.
Q. What are the Benefits offered by the NRE Account?
The NRE Account offers the dual benefit of maintaining an account in Indian Rupees and then converting the funds into a foreign currency at the time of repatriation.
Q. Are my NRE funds repatriable?
Yes. Both the principal and interest are repatriable.
Q. Is the NRE Account operable by a mandate?
Yes, operation of account through a Power of Attorney (POA) holder is allowed.
A POA holder can only issue INR cheques from NRE / NRO accounts for legitimate local payments.
A POA holder cannot
- Open / close accounts
- Gift funds from the account
- Give instructions regarding fixed deposits
- Give a request for change of address
- Repatriate any funds overseas
Q. Can the NRE Account be jointly held?
Yes an NRE Account can be jointly held. The joint account holder can only be another NRI.
Q. Will I get an ATM-cum-Debit Card when I open an NRE Account?
Yes, you will be issued a globally valid VISA Electron Debit Card that gives you access to funds across the globe and the convenience to shop at over 10,000,000 outlets worldwide.
Q. Is there a ceiling on the number of free cash withdrawals from other bank ATMs with the NRE Account?
Yes, four cash withdrawals per month per account from other banks’ ATMs in India are Free.
Q. How do I access this account from abroad?
You have 24 x 7 access to your account through our Secure Internet Banking and Phonebanking facilities.
Q. Can I provide for recurring payments through standing instructions?
Yes, our robust systems facilitate recurring payments on behalf of the accountholder through standing instructions
Q. Is there a minimum balance requirement for the NRE Account?
Yes, a minimum quarterly balance of INR 25,000 is required to be maintained. The service charge for non-maintenance of minimum balance is Rs.750 / quarter
Q. What are the Additional Benefits offered?
In return for maintaining higher balances, the Additional Benefits you enjoy are:
- Free medical insurance up to Rs.50,000 for the prime A/c holder up to the age of 60 Years
- Free Pay Orders / Demand Drafts on branch locations
- Preferred pricing on Demand Drafts drawn on correspondent banks
- Free International Debit Card
- Free International Off-Us ATM Cash Withdrawals : two per month per account
- Free Domestic Off-Us ATM Cash Withdrawals : four per month per account
- Linked Resident Savings Account for family member in India without minimum balance criteria
- Free ATM Card to family member on linked Resident Savings Account
- Facility to transfer funds to linked Resident Savings Account of family member through internet
- Free Payable at Par Cheque Books
- Special pricing on lockers (50% discount on first year's rentals)
Q. What is the minimum balance requirement?
You are required to maintain a minimum of INR 100,000, failing which the Account Maintenance Charges are as mentioned below:
| < INR 25 K |
1,750/- per quarter |
| > or = 25 K and < 50 K |
1,500/- per quarter |
| > or = 50 K and < 75 K |
1.250/- per quarter |
| > or = 75 K and < 100K |
1,000/- per quarter |
Q. What currency is the NRE Term deposit maintained?
Your NRE Term deposit account is maintained in Indian Rupees.
Q. Are my NRE funds repatriable?
Yes, both the principal and interest are freely repatriable
Q. Are the funds in the NRE Term Deposit account taxable?
Interest earned on the account is not subject to tax deduction at source Interest earned on the account is not subject to tax deduction at source
Q. What is the tenure of NRE Term Deposit?
The tenure of the Term deposit ranges from - 1 to 5 years.
Q. Is there a minimum amount requirement for the NRE Term Deposit?
Yes, a minimum deposit amount of INR 50,000 is required to create an NRE Term Deposit.
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